System and method for biometric authorization for check cashing

Abstract

A system for authorizing a check cashing transaction between a consumer and a merchant using identity verification based on biometric information. A system comprises a central biometric information database containing biometric and personal identity-verifying data registered therein by a consumer and containing merchant identity-verifying data registered therein by a merchant. The system further comprises a merchant local device having a biometric reader and linked via a network to the central biometric information database. Using the biometric reader, a consumer desiring to cash a check presents biometric data to the central biometric information database via the biometric reader. The central biometric information database provides an electronic comparison of the present biometric data with the biometric data registered by the consumer. If the presented data and the registered data match, an approval signal is transmitted to the merchant local device.

Description

BACKGROUND OF THE INVENTION[0001]This application relates generally to the cashing of payroll and other checks authorized through a shared database using a biometric for identification, specifically the cashing of payroll checks authorized biometrically through biometric comparisons at a central database, a local database, or a local device.[0002]Fraudulent checks and IDs are becoming increasingly common due to the availability of inexpensive color printers and check and ID forging software. Essentially, anyone can create and print high quality, fraudulent checks and identification cards.[0003]Consequently, cashing payroll and other checks is becoming increasingly costly for both honest check presenters (hereinafter “consumers”) and check cashers (hereinafter “merchants”) due to criminals who present fraudulent checks and IDs. Merchants are negatively affected by check and ID fraudulence because they lose money to criminals when they cash a counterfeit or fake check. In turn, to com...

AI Technical Summary

Benefits of technology

[0014]Another aspect of the present invention is that it allows merchants to confirm the identity of consumers desiring to cash payroll or other checks using only biometrics (and, optionally, an identification number) without the use of any identity-verifying, man-made token.

[0034]According to one embodiment of the present invention, a combined enrollment / transaction process allows a consumer to enroll into the system of the invention and then proceed to cash a check within the same transaction.

Problems solved by technology

Fraudulent checks and IDs are becoming increasingly common due to the availability of inexpensive color printers and check and ID forging software.

Consequently, cashing payroll and other checks is becoming increasingly costly for both honest check presenters (hereinafter “consumers”) and check cashers (hereinafter “merchants”) due to criminals who present fraudulent checks and IDs.

Merchants are negatively affected by check and ID fraudulence because they lose money to criminals when they cash a counterfeit or fake check.

In turn, to compensate for this lost money, merchants must raise the fees they charge for cashing checks, thereby affecting all consumers as well.

However, such databases are not foolproof.

They are not capable of stopping criminals from stealing a legitimate account-holder's checks, forging them, and then cashing them with a fake ID, nor do they prevent criminals from stealing an innocent person's account number(s) and printing counterfeit checks for that account.

There are also problems with negative databases of consumer's driver's license numbers because criminals often use fake IDs to cash their fraudulent checks and can simply discard those used for previous fraudulent transactions and create new ones.

The third system, merchant-issued check cashing cards, is as riddled with problems as the first two fraud detecting systems.

Therefore, the check-cashing card poses a greater risk to the innocent account holder because once the criminal has the account holder's checkbook and check cashing card, they can cash numerous checks without raising suspicion.

An added disadvantage of the last two systems is that both require a man-made token or device in order to carry out the check-cashing transaction.

This system, however, is automated and does not connect the merchant with the check cashing process.

Therefore, the system is not a service offering to help merchants establish consumer loyalty and a strong consumer base.

However, such technology is only protects a merchant against fraudulent behavior by checking a consumer's biometric and the presented check number against a local database that resides on the merchant's server.

However, if the consumer displayed fraudulent behavior within the system at another store, the merchant would never know because merchants enrolled in such a system do not share consumer information.

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